SCHOOL OF FOREIGN LANGUAGES FOR ECONOMICS

Designed by Bui My Ngoc

Bui My Ngoc (MBA) FOR INTERNAL USE

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Bui My Ngoc (MBA)
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International Trade is the
buying and selling of goods
and services between different
countries.
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 I C D B A G H E F

They are simplified and not always useful in explaining how

the real world works and sometimes there are exceptions.

Everyone becomes better off, there is more efficiency and we

can consume more goods and services.
A developed country producing both computers and cloth, and an underdeveloped
country that’s trying to produce computers and cloth.
Workers in a cloth factory in developed country who lose their jobs and who might find
it very difficult to get new ones, because they are in the wrong part of the country.

Some kind of transition process between trade and free trade.

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Because other goods and services have a higher value added and would generate
higher wages and economic growth.

Protecting the new sectors of the economy to let them develop and grow, until they
have a comparative advantage and can compete with other countries.

They may generate economies of scale, and benefit other parts of the economy
by way of positive externalities.

Aerospace, which generates knowledge that goes into the automotive industry
(motor vehicles), electrical engineering, etc.,
Bui My Ngoc (MBA)
Mobile: 0903846785
Bui My Ngoc (MBA)
Mobile: 0903846785
Bui My Ngoc (MBA)
Mobile: 0903846785
 The analogy is that although children could
start unskilled work at a very young age (and learn how to be productive, because of
competition), they need many years of education if they are ever going to get a good,
well-paid jobs; similarly, to develop advanced industries which give a high return. It is
necessary to protect them while they grow up and increase their efficiency & productivity.

The short-term disadvantage is that consumers have to use expensive, inferior

products from inefficient domestic producers, rather than be free to buy superior
imported goods.

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 generic

trademark
dumping

copyright
subsidize

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Bui My Ngoc (MBA)
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A C E F I J L

B D G H K M N

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Bui My Ngoc (MBA)
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Th.S BÙI MỸ NGỌC
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